Correlation Between Blink Charging and MITIE GROUP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Blink Charging and MITIE GROUP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blink Charging and MITIE GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blink Charging and MITIE GROUP PLC, you can compare the effects of market volatilities on Blink Charging and MITIE GROUP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Blink Charging with a short position of MITIE GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blink Charging and MITIE GROUP.

Diversification Opportunities for Blink Charging and MITIE GROUP

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Blink and MITIE is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging and MITIE GROUP PLC ORD 2 5P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MITIE GROUP PLC and Blink Charging is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Blink Charging are associated (or correlated) with MITIE GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MITIE GROUP PLC has no effect on the direction of Blink Charging i.e., Blink Charging and MITIE GROUP go up and down completely randomly.

Pair Corralation between Blink Charging and MITIE GROUP

Given the investment horizon of 90 days Blink Charging is expected to generate 1.63 times more return on investment than MITIE GROUP. However, Blink Charging is 1.63 times more volatile than MITIE GROUP PLC. It trades about -0.09 of its potential returns per unit of risk. MITIE GROUP PLC is currently generating about -0.29 per unit of risk. If you would invest  1,955  in Blink Charging on July 4, 2022 and sell it today you would lose (183.00)  from holding Blink Charging or give up 9.36% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy95.45%
ValuesDaily Returns

Blink Charging  vs.  MITIE GROUP PLC ORD 2 5P

 Performance (%) 
       Timeline  
Blink Charging 
Blink Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Blink Charging are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Blink Charging demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Blink Price Channel

MITIE GROUP PLC 
MITIE Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in MITIE GROUP PLC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively sluggish basic indicators, MITIE GROUP may actually be approaching a critical reversion point that can send shares even higher in November 2022.

MITIE Price Channel

Blink Charging and MITIE GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blink Charging and MITIE GROUP

The main advantage of trading using opposite Blink Charging and MITIE GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blink Charging position performs unexpectedly, MITIE GROUP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MITIE GROUP will offset losses from the drop in MITIE GROUP's long position.
Blink Charging vs. Amazon Inc
The idea behind Blink Charging and MITIE GROUP PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
MITIE GROUP vs. GLAXOSMITHKLINE PLC ORD
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go